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Tax consolidation, or combined reporting, is a regime adopted in the tax or revenue legislation of a number of countries which treats a group of wholly owned or majority-owned companies and other entities (such as trusts and partnerships) as a single entity for tax purposes.
The latter is known as water's edge combined reporting. Worldwide unitary combined reporting was first approved by the US Supreme Court in 1983 in Container Corp. v. Franchise Tax Board (CA) by a vote of 5-3 (Justice Stevens did not participate). The court re-visited worldwide combined reporting in 1994 in Barclays Bank v.
Groups of corporations may elect to file consolidated returns at the federal level and with a few states. Electronic filing of federal [58] and many state returns is widely encouraged and in some cases required, and many vendors offer computer software for use by taxpayers and paid return preparers to prepare and electronically file returns.
When tax return season rolls around, married couples have to decide whether to file their taxes jointly or separately. Filing jointly is far more common and usually results in a lower tax bill.
Filing separately may shelter you from a spouse’s finances, but over time, it could become an increasingly expensive choice. Add up the potential lost savings to reveal when you may want to ...
Filing taxes under the status of “married filing separately” for tax year 2020 — i.e., the return you’re filing in 2021 — is largely unchanged from the 2019 tax year. If the IRS hands ...
For 2021, the basic standard deduction was $12,550 for single individuals or married persons filing separately, $25,100 for a joint return or surviving spouse, and $18,800 for a head of household. Itemized deductions: Those who choose to claim actual itemized deductions may deduct the following, subject to many conditions and limitations:
Filing as a head of household can have substantial financial benefits over filing as a single status taxpayer. As a head of household, one may obtain a more generous tax brackets and larger standard deductions. [14] There are many special rules and exceptions applicable to head of household filing status. [15]